Monday, October 18, 2021


 There are often disruptive processes or technologies that need some relaxation of the old governance models during the changeover.

Governance is a collective mindset; and can be used to raise visibility and awareness for many things that are captured at the different levels of the organization. Organizations should be identifying patterns for improving governance maturity, and promoting engagement, motivation, and innovation as these are vital aspects of top-performing enterprises. 

In today’s modern economy. Sound governance is to improve the management effectiveness and eliminate risks. Technically, the governance structure is independent of the management structure, but the governance process/mechanism can be embedded into key business processes seamlessly in order to improve the organizational manageability and maturity.

Governance is all about performance and conformance: Traditional governance is compliance driven; while proactive governance is more performance driven. Still, performance and conformance are both important. Performance without conformance is not genuine. Conformance without performance adds very little to the multifaceted business value. Governance is not only about controlling or compliance, but about conforming to laws/regulations/principles/rules etc, for achieving high performance. Without strong governance, businesses will lose sight of their prime purpose.

Performance should be focused on maximizing capital allocation, company performance and shareholder values. To some degree, conformance is inherent within value-driven performance. Actively monitoring of management for transparency and analysis of potential long-term consequences must become the strong governance discipline and agenda of this hyperconnected and always-on business new normal. When the internal and external emphasis shifts from regulatory and compliance governance to identifying, reporting and developing the behavioral governance, team dynamics, performance improvement, etc, of organizations, then you will make a quantum move away from these repeated instances of governance failure, and become more effective in steering the organization in the right direction for accelerating business performance.

Governance is about delegation and accountability: Strong governance enhances strategic alignment and structural flexibility. The corporate governance bodies such as the board of directors need to make inquiries such as: To what extent and how does the corporate planning align corporate priorities, sector business plans, and resource allocations? Can the management function effectively to make sure their organizations are on the right track of strategy management? Do senior management committees make informed, proactive and timely decisions to achieve desired results? Etc. Through solid governance discipline, the alignment process can become a smooth and harmonized process, approaching a flow zone in which people are ready for moving to a fluid working environment, and business executives are eager to set stages for designing and implementing strategies by taking a step-wise approach.

Organizations have to consciously fight against establishing a culture of no accountability. There should be a governance mechanism embedded in all crucial business processes, including the delegation and assignment of responsibilities for carrying out the successful execution of assignments. Holistic governance approaches enforce accountability at different levels of the organization, go hand in hand with the delegation of authority or power, and advocate the digital style of autonomy and self-management. It can assure the corporations’ operation under the correct directions and behaviors correctly to accelerate performance..

Governance is about prediction and prevention:
Information exponentiality and change is the new normal. Uncertainty and risk are inherent in every venture. Sound governance is part of eliminating risk and doing the right thing. Preventing problems is superior to fixing problems. Information based risk prediction is an important step in enhancing proactive governance discipline. Often, the quality of your data defines the quality of your prediction, and quality of prediction is based on the quality of predicting model and insight of talented analysts, etc. Ideally, apply the real time analysis model to predict the potential risks and prevent or manage them smoothly.

Generally speaking, preventing problems, managing risks and enabling continuous improvement require the power of information, leadership support, integrating the data-based insight into the business processes for identifying, assessing, preventing, and resolving problems and reporting the success. Assuming the risk is highly likely to occur, to decompose complexity or deal with possible stagnation, it’s important to leverage effective tools such as interdictive analysis to dig into the root causes of mismanagement, prevent the business from getting stuck at ineffective strategy management, aimless administrative bureaucracy, irrational decisions, or irresponsible behavior, estimate the impact of upcoming events that may happen in strategy/operation plans, and the consequences, as well as how to avoid unnecessary pains.

There are often disruptive processes or technologies that need some relaxation of the old governance models during the changeover. Governance practices need to be converged into cohesive management disciplines, and well integrated into the key components of business strategy. Governance processes become more lightweight, continuous, focus more on results rather than detailed plans. Governance practices become more proactive, performance driven and people centric.


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